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The S&P 500 index gained just 4% over the 12 months ended June 30, 2016. A collapse in profits hit energy and mining companies hard, and hurt earnings of the S&P 500. A 4% return is less than half the average annual return of about 10% on U.S. large-companies' equities since 1926.

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BULL MARKET RETURNS

This is the picture of a historic bull market that went nowhere after 2014. While stock returns have crept ahead in the last five years, gross domestic product has moved at a slow but steady pace, and was expected to accelerate to a 2.4% rate in the last three quarters of 2016.

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ENERGY STOCKS CRUSHED

In the year ended June 30, 2016, three "defensive" -- utilities, telecom and consumer staples -- were leaders for the second quarter in a row. Financials were the biggest losers, followed by energy and commodities-related issues.

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INDEXES TRACKING ASSET CLASSES

The huge difference between the best and worst asset-class returns shows why diversification is crucial. REITs, both U.S. and global, were No. 1 in the five-years ended June 30, 2016, along with U.S. large-cap stocks. Crude oil investments lost two-thirds of their value. Commodities and gold suffered crushing losses.

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LEADING ECONOMIC INDICATORS

Leading economic indicators released on July 22 signaled continued growth ahead. Despite a disappointing second quarter economic growth estimate, the Conference Board's forward-looking economic release forecast a strengthening economy for the rest of 2016, driven by the great American consumer.

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S&P 500 INDEX VS. EARNINGS*

Red squares show expected earnings on the S&P 500 index based on a June 29, 2016 forecast by Wall Street analysts for earnings of $118 per share in 2015, $119 in 2016, and $136 in 2017. Earnings growth is poised to propel stocks higher, unless a crisis or really bad unexpected news sets world progress back.